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Samsung‘s DRAM market share hits record high in Q3

By Korea Herald

Published : Dec. 13, 2011 - 16:26

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Samsung Electronics Co., the world’s leading memory chipmaker, expanded its portion in the global dynamic random access memory market to a record quarterly high in the third quarter, industry data showed Tuesday.

The company accounted for 45 percent of global DRAM revenues in the July-September period, IHS iSuppli said, widening its lead over other suppliers despite the memory industry‘s downturn.

While third-quarter global DRAM revenues dropped 16 percent from the previous three months, Samsung’s DRAM revenues fell 9 percent to $3.35 billion, the research firm said.

The contraction in the global DRAM industry was due to feeble consumer demand for PCs, which sent DRAM prices plummeting.

The average selling price of DRAM devices, which are used mainly for personal computers, fell 26 percent on-quarter, IHS said.

But the average price of DRAMs made by Samsung declined just 17 percent in the third quarter, the research firm said. Shipments increased 9 percent.

“Samsung perennially has the DRAM industry‘s largest capital expenditure budget, allowing it to reduce costs and offer advanced products more quickly than the competition,” IHS analyst Mike Howard said.

“Because of this, the company was better able to absorb the decline in average selling prices in the third quarter.”

However, Samsung’s U.S. rival Micron Technology Inc. was better than the Korean firm in weathering the memory industry‘s downturn, IHS noted.

Micron Technology’s revenues declined only 3.8 percent in the third quarter from three months earlier, helping the company narrow the gap with the No. 3 Elpida Memory Inc. of Japan. Micron Technology was the fourth-largest DRAM supplier in the third quarter.

South Korea-based Hynix Semiconductor Inc., which is planned to be acquired by SK Telecom Co., retained its runner-up position in the DRAM market, but its revenue took a beating from the memory industry slump.

Hynix‘s revenue tumbled 23 percent in the third quarter from three months earlier, while its market share stood at 21.5 percent, according to IHS. (Yonhap News)